What is a Section 32 Statement?
A Section 32 Statement is a legal disclosure document that sellers in Victoria must provide to potential buyers before signing a contract. It outlines key property details, including title information, zoning, and any restrictions.
The Section 32 Vendor Statement (“section32 statement”) is provided as a disclosure to Buyers before they sign the contract.
What must be included in a Section 32 Statement?
The statement must include information about mortgages, caveats, easements, and zoning regulations. If there are any outstanding council rates or unapproved building works, these must also be disclosed.
What a Section 32 must disclose — and what to check
| What it covers | What's disclosed | Red flags to check |
|---|---|---|
| Title | Title details and the plan, plus any mortgages, easements, covenants or caveats | An easement or covenant that limits building; a caveat that isn't explained |
| Outgoings | Council rates, water, land tax and any owners corporation fees | Arrears, or a looming special levy |
| Planning and zoning | The zoning and any planning controls or overlays | An overlay (heritage, flood, bushfire) that restricts what you can do |
| Building works | Building permits from the last 7 years and any owner-builder insurance | Unapproved or uninsured building work |
What happens if a Section 32 is incorrect or incomplete?
If the statement contains false or missing information, the buyer may have the right to withdraw from the contract or take legal action. There are serious consequences to the Seller for knowingly or recklessly providing false information or failing to supply all required information, including providing you with a potential avenue to validly rescind the contract prior to settlement.
Why is it important to review the Section 32 statement with a legal expert before signing?
This is why both buyers and sellers should have a conveyancer review the document carefully before proceeding. The cost of asserting any rights under the contract inside or outside the court system is usually a costly and time-consuming experience. We recommend that you undertake all due diligence, including engaging a legal expert to review the Section 32 statement prior to signing. Addressing any of your concerns proactively prior to proceeding can prevent legal and financial problems.
General information only — not legal advice. Conveyancing law varies by state and changes over time; confirm your situation with a licensed conveyancer or solicitor.